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Summary: The American Association of Insurance Services (AAIS) homeowners program includes forms that provide coverage for the owner-occupant of one to four family dwellings used for private residential purposes. There are forms for the tenant homeowner, and for cooperative apartment or condominium owners. There are seven coverage forms in all, each providing both property and liability coverages. Following is a brief overview of the program followed by a comparison of the most commonly used homeowners form.

Topics covered: Introduction Eligibility Rating information Overview of forms Comparison of form 3 Ed. 2.0 to HO 0003 01 06 Definitions Coverage A – residence Coverage B – related private structures Coverage C – personal property Incidental property coverages Perils insured against – coverages A, B, C, and D Exclusions that apply to property coverages Principal liability coverages Incidental liability coverages Exclusions that apply to liability coverages What must be done in case of loss or occurrence How much we pay for loss or occurrence Policy conditions

Introduction

The American Association of Insurance Services (AAIS) has filed a revised homeowners program with an effective date of July 2007. The prior forms were revised in 1996. The prior revision was in 1988. The current forms are distinguished from the earlier forms in that they are numbered HO 0001 01 06, HO 0002 01 06, etc.; the earlier equivalent forms were referred to as Form 1, Edition 2.0, Form 2, Edition 2.0. AAIS notes that homeowners form HO 0008 01 06 has an extremely limited use, so many of the coverage options previously available for use with the form have been withdrawn. Basic form HO 0001, however, is still available with the full range of coverage options.

Unlike the earlier forms, the new forms do not contain any provisions that apply to mobile homes. For example, form 3, under loss settlement terms, states “The Replacement Cost Terms apply only to buildings covered under Coverages A and b that have a permanent foundation and roof. They do not apply to… mobile homes whether or not on a permanent foundation.” Now, the applicable provision states the replacement cost terms apply only to buildings with a permanent foundation and roof, but make no reference to the coverage not applying to mobile homes. This is because the mobile homes will be addressed by means of a mandatory endorsement filed only in the mobile homeowners program.

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